What Happens if You Don’t Use Your PTO?

This depends on the specific policies implemented by your employer and the laws in your state. For example, with a use-it-or-lose-it policy, you are technically forfeiting your PTO if you don’t use it by the end of the term. But with a “carryover with a cap” policy, you may carry over some PTO, but they will cap it, meaning you technically lose some of it. Knowing your company’s policies and your state labor laws can help to avoid the unwanted disappointment of losing valuable PTO.

Geraldine Farache
- May 26, 2022
- 6 min read

A Complete Guide to PTO, Company Policies, and Employee Rights

Q: Can an Employer Take Away Earned PTO?

So, what’s the deal? Can an employer take away accrued vacation time? Technically, an employer can only take away earned PTO if they have a legal policy that allows it. At Sorbet, we want to promote healthier employer/employee relationships by offering a PTO solution that benefits everyone and normalizes taking time off from work. Unused PTO is a loss for everyone. Having the option to cash out PTO results in greater job satisfaction and a better work-life balance for employees while reducing PTO liability for employers.For more information, contact Sorbet today. We want to help.

Updated: Dec 1, 2022

You’ve been working hard all year without a break. You’d like to take time off but December is your busiest month.

What will happen to your vacation time? Can an employer take away earned PTO?

It depends.

In this blog we’ll discuss earned PTO, various company policies, and the laws that protect employee rights to PTO.

How Do Vacation Accruals and Caps Work?
What Happens if You Don’t Use Your PTO?
Understanding the 3 Most Common Company Policies on PTO
Is PTO Protected By Law?
Sorbet: Providing Employers and Employees With a Win-Win PTO Solution

A Complete Guide to PTO, Company Policies, and Employee Rights

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